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The Caton Team believes, in order to be successful in the San Fransisco Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the upmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true.

Month: September 2017

With so much talk about “Equity Share” and helping buyer get into homes – it’s time to talk about how it works. Thought I would share this article BY LEW SICHELMAN

Co-borrowing on the rise: What makes for a smooth deal?

The most important consideration isn’t getting into a co-borrowing deal, but how all parties plan to get out of it.

Ever since Ugh married Meg and they could barely afford their first cave, there have been co-signers named Mom and Pop making mortgages possible.

But co-signers can come in many forms. Another relative, friend, employer, roommate, significant other or even an investor can agree to be on a mortgage that someone can’t qualify for on his or her own.

Nowadays, slightly more than one in every five houses purchased with financing in the first quarter — 22 percent — involved co-borrowers, according to Attom Data Solutions. That’s up from 20 percent for the same period last year and in 2015, when the real estate information company first began tracking the phenomenon.

The incidence of co-borrowers is even higher in 11 of the country’s largest cities. In Miami, a whopping four out of every 10 single-family dwellings purchased in January, February and March were bought with an unmarried co-borrower. In Seattle, the share of co-borrower purchases was 37 percent; in San Diego and Los Angeles, 28 percent.

The main reason homebuyers need co-borrowers is because they can’t qualify to purchase the house they want, says Attom Chief Economist Daren Bloomquist, who co-signed for his wife’s sister and her husband so they could afford to buy in pricey Southern California.

Housing prices are so expensive in some locations that without help, many buyers might be relegated to the rental market forever.

And some buyers don’t have the credit scores, credit histories or the debt-to-income ratios to buy, even at a reasonable price. On top of that, many buyers are looking at houses beyond their means.

Blomquist is seeing a rise in companies offering to help young buyers in exchange for a piece of the action in the form of shared appreciation. Outfits such as unison.com “are institutionalizing the idea of co-borrowing and shared equity,” he explained.

All of this begs the question: How should you approach a co-borrowing situation, both as a buyer and as a co-signer?

When co-borrowing gets complicated

The most important consideration isn’t getting into a co-borrowing deal, but how all parties plan to get out of it.

While clear heads prevail — when both sides are excited about the deal and there have been no disagreements yet — you should sit down together and decide how and when it will end.

It might make sense for the agreement to last long enough for the buyer to build up credit, income and cash reserves to eventually buy out the co-signer. But what if interest rates rise, and it’s unwise for the buyer to seek a new loan? In that scenario, the deal might include some kind of buffer, either a period of time or a certain mortgage rate.

The main point to parse is what share of the profits the co-borrower will be entitled to, if there are, indeed, any profits to split. A relative may not want anything in return — thanks, Mom and Dad! — but a less partial signer might want a healthy chunk.

It’s easy to identify profit if a buyer agrees to sell and move on. But if there is no sale, the parties will need to know the home’s value at the time the deal is to be dissolved.

An appraisal, the cost of which should be borne equally, is in order in this case. But if one side or the other disagrees with the valuation, it might be a good idea for each party to pay for their own appraisal. If there is any difference between the two, one option could be to split the difference down the middle.

The parties should also have a plan for if the value of the property goes down: Will the co-signer share in the loss, and to what extent?

Another aspect of the deal that people tend to forget is improvements made to the property during the co-owner period. Usually, the buyer foots the bill for things such as landscaping and an addition. But will he or she have to share in the value these and other features that add to the home’s worth?

Co-signers on the mortgage are not on the title and have no ownership interest in the place. Yet their own debt-to-income ratio could take a hit because they have incurred debt by co-signing. Consequently, their ability to obtain their own mortgage, home equity loan or even a credit card could be limited.

Remember, too, that if a buyer doesn’t make the house payments as promised, the lender will come to the co-signer, who will be responsible not just for the payments but also late fees and, if it comes to that, collection fees and lawyer’s fees. Late payments are likely to take a heavy toll, as is a co-signer’s personal relationship with the buyer.

To protect themselves and keep tabs on “tardy alerts,” co-borrowers should insist that both they and the buyer be billed separately by the mortgage company.

The Caton Team is comprised of Susan and Sabrina Caton – a mother/daughter in law team. We are full time, local Realtors with over 25 years of combined Real Estate experience. How can The Caton Team help you?

Below is a link from the California Association of Realtors with some great tips on monitoring your credit AND the link to see if your information was breached. It’s a good idea to check our credit report each year to make sure there are no surprises. Click on the link below for my information!

It’s time to clear a few things that have been lingering around my desk, bits and pieces of market news that together explain some of what’s happening with today’s housing market and how it may change in the near and distant future.

More would-be buyers opting out of homeownership

The most popular theory about why more houses aren’t being sold: There simply aren’t enough properties on the market to go around. But according to a new study from Experian, one of the big three credit repositories, a big chunk of what would ordinarily be potential buyers have opted out of homeownership.

More than a quarter of the 1,000 people queried in a telephone survey in late June — 27 percent — told Experian that they have no interest in owning, not now and not five or 10 years from now. That’s up from 19 percent when pollsters asked the same question a year ago.

Another big reason: Folks want to remain mobile. Nearly two in five — 37 percent — want more flexibility to relocate than owning a house allows.

And then there are the two issues of cost and maintenance. One in four — 26 percent — have little desire to carry as much debt as is required to purchase a house, and the same percentage are happy that their landlords pay for upkeep.

Surprisingly, perhaps, 11 percent don’t think owning real estate is as valuable as it used to be, and 22 percent want to invest in something other than a home of their own.

Credit also is a concern. Some 43 percent told pollsters that they have applied for a mortgage in the past but were rejected. More than half cited their poor or limited credit histories, insufficient incomes and outstanding debt as the main reasons why they were turned down.

A small number also said their spouse’s poor credit histories and the lender’s inability to verify their incomes also played a part in their rejections.

Eventually, AVs, aka driverless cars, will put more money in consumers’ pocketbooks as autos switch from a consumer good to an on-demand service, freeing up some extra dough that would have been spent on monthly car payments and maintenance, Director of Research Rick Palacios surmises.

This, in turn, will bring about major shifts in the housing sector. According to Palacios:

•That will put a damper on drive-until-you-qualify markets beyond suburbia, but only for awhile. Once the majority of infill sites are repurposed, these locations will re-emerge. A long commute, yes, but by then AVs will allow people to sleep or work while the vehicle drives itself.

•Urban employment will be back in vogue as repurposed real estate will allow folks to live closer to city centers.

•Density will rise because streets won’t need to be as wide. There won’t be a need for massive driveways or two, three or four-car garages, either. As a result, people will be buying homes in which 100 percent of the space is truly livable.

•Construction costs will decline as transportation expenses for moving building products from plants and warehouses to construction sites dwindle. Also, construction time should fall as moving products becomes a 24/7 operation.

•The elderly will remain in their homes longer while aging in place because they will remain independent even after they lose their right to drive. And as a result, the remodeling market should flourish as seniors and retirees upgrade to make their places more livable in old age.

•How this all shakes out “is based on what we know today,” says the Burns chief researcher. Everything is subject to change, he adds, depending on government policies, which are difficult to predict.

But “all in all,” Palacios says, “we expect the advent of AVs to benefit the overall housing market and greater economy.”

The ominous inventory problem

The latest report on pending home sales from the National Association of Realtors (NAR) contained this ominous quote from NAR Chief Economist Lawrence Yun:

“Buyer traffic continues to be higher than a year ago, the typical listing has gone under contract within a month since April, and inventory at the end of July was 9.0 percent lower than last July. The reality, therefore, is that sales in coming months will not break out unless supply miraculously improves. This seems unlikely given the inadequate pace of housing starts in recent months and the lack of interest from real estate investors looking to sell.”

Toward that end, it is somewhat heartening to know that homebuilders around the country report that acquisition, development and construction financing continues to loosen.

“Though some concerns lurk, lending standards remain broadly supportive of continued loan growth,” said Michael Neal, an economist at the National Association of Home Builders.

The Caton Team is comprised of Susan and Sabrina Caton – a mother/daughter in law team. We are full time, local Realtors with over 25 years of combined Real Estate experience. How can The Caton Team help you?

Saving money for a downpayment on a house is a huge task. I know – I’m doing it. So when I saw this article – I had to share it!

5 Little Tips That Will Save You So Much Money

By Beth

Saving money is the key to a successful life. You need to have money stashed away for a rainy day, just in case you want to take a trip, plan the wedding of a lifetime, buy a car or something unexpected happens. When you’re looking for the best way to save money quickly, it’s easy to try too hard or put too much of your income away. Like all things in life, the best way to save money fast is to do it little by little. Don’t forget the 50/20/30 rule and do the rest as you go…

1. Have a no spend weekend

You’re less likely to spend money at work, besides lunch and travel expenses. It’s during the weekend when most of us go shopping crazy. From eating out to buying new shoes, it feels good, but it’s better to have a no spend weekend once in a while. Don’t order food, don’t eat out, and plan your meals beforehand. Go out and do something that doesn’t involve spending money, and put aside what you were planning to spend on new clothes once the weekend is over!

2. Automate it

If you’re truly terrible with money, set up a direct debit from one account to another. Start small and build it up. The less you feel it coming out of your account, the easier it will be to build-up large amounts in savings. If you add up the automated payments you make to subscription services you’ll probably be surprised how much you’re spending a year.

3. Waste less food

Plan your meals on a Sunday, eat your leftovers for lunch and keep track of your food waste bin. It might not feel like you’re saving money by eating yesterday’s dinner over your desk but it’s estimated that you’ll save around $500 a year. It doesn’t feel like much but it goes a long way.

4. Learn delayed gratification

It’s something that we forget as we get older, but when you see something you really want, part of the reward of adulthood (and working hard) is that you can actually get it. But if you delay that gratification, save the money for it first and buy it at the very end of the month (before your next paycheck), you get to feel like you’ve earned it, which makes the treat much sweeter.

5. Get a financial advisor on your phone

My must have when I’m keeping track of my incomings and outgoings is Daily Budget. Career Girl Daily’s co-founder Ellen introduced me to it a while ago and I haven’t looked back. It’s come in handy when buying my first ever house, paying bills, and saving money to buy expensive coffee tables. It tells you how much you should spend a day, and how much you should save in order to reach your savings goal. Genius.

The Caton Team is comprised of Susan and Sabrina Caton – a mother/daughter in law team. We are full time, local Realtors with over 25 years of combined Real Estate experience. How can The Caton Team help you?

For most of the country, September signals the end of summer’s dog days and a return to fuzzy sweaters, chilly evenings, and, of course, pumpkin spice everything (this is America, after all).

But before those first autumn leaves begin to fall, it’s crucial to take a few steps to stave off any cold weather home breakdowns. Luckily, we’re here to make it as easy as possible for you with our handy checklist of home maintenance chores to tackle this month. These quick, relatively painless tasks can potentially save you major repair costs down the road.

Call in a pro: Serious cracking and concrete damage will require professional repair—expect to spend north of $1,000, although exact costs will depend on the severity of damage and cost of materials and labor in your area.

2. Clean and repair the siding

“After a long summer, siding can become dirty or mildewed,” says Chris Granger, vice president and general manager of Sears Home Services.

September is a great time to use a pressure washer to clean it up—and inspect for more serious problems before winter comes. Check first for rotten or warped areas, and inspect your caulking, which can shrink and crack over time.

DIY: You don’t necessarily have to shimmy up a ladder for a close-up of your siding; the pros we talked to recommend using a smartphone camera or drone to zoom in on problem areas. Inspect the butt joints where two pieces of siding meet and, if you spy cracks, consider tackling the job yourself.

How? A day ahead, thoroughly wash your work surface with soapy water. Once the area is completely dry, squeeze a bit of caulk into the gap in the siding, then smooth it with your finger. Wipe it once more with a damp sponge to even out your work.

(Pro tip: Be sure to never caulk the underside of your siding, which could prevent the boards from expanding and contracting during changing weather.) Once you’ve fixed any problem areas, let everything set for a few days. Then follow up with a good pressure wash (you can rent a machine for around $35).

Call in a pro: If your siding has seen better days (think missing, bent, or cracked pieces), consider replacing it. As a general rule, fiber cement siding is priciest, followed by wood, aluminum, and vinyl. Replacing vinyl siding on an average 2,200-square-foot home will set you back more than $6,500 (in addition to the cost of removing existing materials). If you choose wood or fiber cement siding, you’ll likely spend twice that. For an expert pressure washing, expect to spend $100 to $300.

3. Check and repair leaky faucets

“Before the temperatures start to dip, examine leaky faucets in the kitchen, bathrooms, and utility room locations,” Williams says. “Most likely, whatever time and money you spend now will be considerably less than a broken pipe in the dead of winter.”

DIY: Just turn on the faucet, turn it off, and watch for any telltale dripping. Your fix might be as easy as replacing the washers on the faucet’s knobs, or you might have a worn cam washer, valve seat, or spring. We have you covered with our step-by-step guide to fixing a leaky faucet.

Call in a pro: If you’d rather not deal with it yourself, you can always hire a plumber. Estimates for fixing leaks vary, but expect to spend at least $100.

4. Make sure windows are sealed tight

All double- or triple-pane windows should have a tight seal around their perimeter that separates the individual panes of glass and traps inert gas between them, providing a break between the temps inside and outside your home. If you notice that your windows are frequently foggy, that’s likely a sign of a failed seal.

DIY: Try cashing in on your windows’ warranty first; many companies will cover failed seals for a decade or longer.

Call in the pros: If your warranty won’t cover a total replacement, check out a professional window defogging company. These pros will reseal the window’s perimeter and replace the gas between the panes for an average of $300 (depending on location and the number of windows).

5. Sweep the chimney

When temperatures finally fall, you’ll want to be ready to light your fireplace. But before your first toasty blaze of the season, make sure your chimney has been cleaned.

“Built-up soot in your chimney can increase your risk of a chimney fire, and a clogged chimney can also increase the presence of carbon monoxide in your home by not allowing it to escape when you have a fire burning in the fireplace,” says Lindsey Pasieka of ConsumerSafety.org.

This one really should be a maintenance task you do every month, Granger says. Dirty air filters can lead to higher energy bills and irreparably damage your HVAC system.

DIY: Changing your air filter is a fairly straightforward task—just be sure to check the size of your existing filter before you hit the hardware store. Pros also recommend removing all vent covers and vacuuming pet dander, hair, and other debris that can accumulate and gunk up your HVAC system.

Call in the pros: Take things a step further by hiring a professional to tune up your unit before winter arrives. A good contractor will ensure your thermostat is working properly, fix loose electrical connections and gas connections, and check your unit’s blower motor and heat exchanger. Expect to spend $80 to $150.

7. Service the yard equipment

Autumn—not spring—is actually the best time to show some love to your lawn equipment before you put it away for winter.

“It’s harmful for equipment to sit all winter long with old oil in the case and dirt on the other components,” says Lisa Turner, author of “House Keys: Tips and Tricks From a Female Home Inspector.”

DIY: Change your oil and filter, replace air and gas filters, and install new blades if necessary. Then perform the lubrication and adjustment maintenance required by your equipment’s manual. But you don’t want to drain the gas tank completely, Turner says. Instead use a premium gasoline without ethanol but with a gas preservative. Just before you store it, fill the tank with this mix.

The Caton Team is comprised of Susan and Sabrina Caton – a mother/daughter in law team. We are full time, local Realtors with over 25 years of combined Real Estate experience. How can The Caton Team help you?

The internet makes shopping for everything in life so easy. And while there are no major surprises when purchasing toilet paper or cleaning supplies, buying furniture and home decor online can prove a bit tricky. Is that sofa more of a cream, taupe or oatmeal? Will those barstools really fit under the counter? So we asked Michele Hofherr, co-founder of the online-only home goods consignment shop Previously Owned by a Gay Man, to weigh in with her tips about what not to do. Here’s what she has to say.

MAKING ASSUMPTIONS ABOUT SIZE AND SCALE

It is virtually impossible to look at a chair online and know if it will fit with a table or desk in your home. That’s why a measuring tape is essential. Look carefully at the dimensions listed online and then physically measure them out at home to make sure the piece is the right size for your space before clicking purchase. And if you are buying a chair to fit with a desk, don’t forget to check the arm measurements to make sure they’ll fit under the desk comfortably.

FORGETTING TO CHECK ON QUALITY

That distressed leather loveseat you’ve got your eyes on may look like the perfect piece for your home, but just because it looks good online doesn’t mean it will necessarily live up to expectations in person. As the saying goes, “If it looks too good to be true, it probably is.” Do your due diligence: Research the manufacturer (the company one keeps can be very revealing) and look for material content. Make sure the item that looks like wood is indeed made from real wood, or that a rug that appears to be wool isn’t actually made from man-made fibers.

IGNORING SHIPPING AND RETURN POLICIES

It’s easy to get caught up in the price of shipping and forget to ask or look into how an item will be shipped. This is especially important with large, heavy or awkwardly shaped items. Ask how long shipping will take (if not explained on the site), and, for large items, if white-glove delivery is available. When dealing with an individual seller, it might also be wise to ask who is liable should any damage occur in transit.

MISJUDGE COLOR ACCURACY IN ONLINE IMAGES

This is a tricky one. Colors can appear very different online because of lighting, camera flash or photo editing. If possible, request a color swatch that you can hold up in your own space, or look for additional shots of the item elsewhere online.

FAIL TO FIND OUT WHETHER ANY ASSEMBLY IS REQUIRED

Very often, a piece of furniture may look like it would come in one piece, but when you read the fine print, you see two sometimes-scary words: assembly required. Rather than leave it up to surprise, try calling and talking to a customer service representative who can provide specific details about what work you’ll need to do on your end. Pro tip: Consider buying previously owned or vintage pieces because you’ll rarely need to assemble a thing.

Hello! Thank you for reading my next installment of REAL EATS, the beat on where to eat. Where I combine my love of great food with my passion for Real Estate.

When I first met Eric, the owner of The Wine Project I totally enjoyed his vibe. He had a vision – a nice glass of wine, a little something to eat – enjoy life. It is what we all need – to slow down a little and savor the finer things.

You have options at the Wine Project – you can be very scientific with the awesome wine menu – learn a great deal about delicious wine, or you can order some bar favorites that mesh so well with the meun.

I’ve enjoyed Brunch, Dinner and Dessert at the bar. Each moment was tasty and fun. The Bacon Benedict still makes my mouth water – and that’s not the Mimosas talking. For dinner I cleaned my plate of his newest addition – a savior pesto pasta with roasted peppers, peas, fresh tomatoes, and toast walnuts. It was magnificent. But my absolute favorite treat, aside from French Wine and Champagne – is the Zeppole Dessert. A pillow of heaven – I mean – Deep Fried Ricotta Dough served withe Chocolate…. I don’t need to go on – do I?

Occasionally The Wine Bar hosts live acoustic guitars.

JOIN US WEDNESDAY SEPTEMBER 6, 2017 AT 7PM! (Yes, this is a shameless plug for my husband and friend.) But also an excellent excuse for Zeppole and Champagne.

Eric just updated the menu, kept some classics and added – what is sure to be – new favorites to the menu. I had every intention of snapping photos of my meals to share with you – but they looked too delicious to do anything but enjoy. I did manage to snap a photo of the Zeppole! It took me about four orders to snap this photo. Hard work – I do what I can.

The Caton Team strives to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral or some guidance – we are here. Contact us at your convenience – we are but a call, text or click away!